Supermarkets & Grocery Stores in California - Industry Market Research Report

Attention shoppers: Increasing regulation and fierce competition will hinder industry growth

Supermarkets & Grocery Stores in California

The Supermarkets and Grocery Stores industry in California has marginally declined over the five years to 2019 due to costs associated with an increasingly stringent regulatory environment, as well as heightening competition from external retailers. Consumers opted to shop at mass merchandisers and wholesale clubs at greater rates due the perceived convenience of these establishments. The emergence of online grocery delivery services further hindered growth. Many stores began reducing prices to attract consumers. During the five-year period, industry operators diversified product offerings to match growing interest in high-end, specialty products that not supplied by alternative retailers. In California, grocery stores like Trader Joe's, which use their inventories to distinguish themselves, have met with success. Over the five years to 2024, the Supermarkets and Grocery Stores industry is expected to slowly recover. Per capita disposable income in California will continue rising and consumer preferences will continue trending toward healthy eating, therefore, raising demand for higher-priced products.

The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States. Establishments in this industry retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products. Delicatessens primarily retailing food are also included.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.